Wall Street edges up with help from McDonald’s






NEW YORK (Reuters) – Stocks were modestly higher on Monday, helped by stronger-than-expected sales from McDonald’s, but gains were constrained as investors awaited any sign of progress in talks to avert the so-called fiscal cliff.


Developments in Europe also tempered sentiment after Italian Prime Minister Mario Monti said he would resign once the 2013 budget is approved. The move added to uncertainty about reducing euro zone debt and drove Italy’s borrowing costs higher.






U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a deal for avoiding the “fiscal cliff” that is set to go into effect in the new year.


The two sides declined to provide details about the unannounced meeting. Obama is expected to make remarks at 2 p.m. (1900 GMT) from Michigan where he is touring an auto plant.


The fiscal cliff talks have kept markets on edge in the last month as investors worry the scheduled measures could send the economy into recession if politicians do not reach a deal.


While the negotiations are at the forefront of investors‘ minds, most have adopted the position that a deal will be reached, even if it is at the last minute, said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati, Ohio.


“We haven’t had any ‘progress’ the last two weeks or so, yet all in all equity markets have continued to hang tough,” said Detrick. “The rhetoric from Washington is strong, but Wall Street is betting something probably will get done.”


The Dow was helped by a gain in McDonald’s Corp . The fast food chain’s stronger-than-expected November sales marked a rebound after a decline in October. The stock was up 1 percent at $ 89.33.


The Dow Jones industrial average <.dji> gained 32.64 points, or 0.25 percent, to 13,187.77. The Standard & Poor’s 500 Index <.spx> added 1.09 points, or 0.08 percent, to 1,419.16. The Nasdaq Composite Index <.ixic> rose 9.90 points, or 0.33 percent, to 2,987.95.</.ixic></.spx></.dji>


Ingersoll-Rand Plc said it will spin off its security division and announced a $ 2 billion share buyback, sending its shares up 2.4 percent at $ 49.86.


Cisco Systems boosted the Nasdaq after it laid out its midterm growth strategy on Friday. Its shares were up 2 percent at $ 19.72.


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McAfee wants to return to US, ‘normal life’






BACALAR, Mexico (AP) — Software company founder John McAfee said Sunday he wants to return to the United States and “settle down to whatever normal life” he can.


In a live-stream Internet broadcast from the Guatemalan detention center where he is fighting a government order that he be returned to Belize, the 67-year-old said “I simply would like to live comfortably day by day, fish, swim, enjoy my declining years.”






Police in neighboring Belize want to question McAfee in the fatal shooting of a U.S. expatriate who lived near his home on a Belizean island in November.


The creator of the McAfee antivirus program again denied involvement in the killing during the Sunday Internet video hook-up, during which he answered what he said were reporters’ questions.


His comments were sometimes contradictory. McAfee is an acknowledged practical joker who has dabbled in yoga, ultra-light aircraft and the production of herbal medications.


The British-born McAfee first said that returning to the United States “is my only hope now.” But he later added, “I would be happy to go to England, I have dual citizenship.”


He was emphatic that “I cannot ever return to Belize …. there is no hope for my life if I am ever returned to Belize.”


“If I am returned,” he said, “bad things will clearly happen to me.”


He descibed the health problems that had him briefly hospitalized earlier this week after Guatemalan authorities detained him for entering the country illegally. He apparently snuck in across a rural, unguarded spot along the border.


“I did not eat for two days, I drank very little liquids, and for the first time in many years I’ve been smoking almost non-stop,” he said. “I stood up, passed out hit my head on the wall, came to,” though he now said he was feeling better.


McAfee praised the role his 20-year-old Belizean girlfriend, Samantha Vanegas, played in his escape from Belize, where he claims he is being persecuted by corrupt politicians. Authorities in Belize deny that they are persecuting him and have questioned his mental state.


“Sam saved the day many times” during their escape, he said, and suggested he would take her with him to the United States if he is allowed to go there.


He confirmed that journalists from Vice magazine who accompanied him on his escape after weeks of hiding in Belize had unwittingly posted photos with embedded data that revealed his exact location.


“It was an error anyone could make,” he said, noting they were under a lot of pressure at the time.


McAfee has led an eccentric life since he sold his stake in the anti-virus software company named after him in the early 1990s and moved to Belize about three years ago to lower his taxes.


He told The New York Times in 2009 that he had lost all but $ 4 million of his $ 100 million fortune in the U.S. financial crisis. However, a story on the Gizmodo website quoted him as describing that claim as “not very accurate at all.”


McAfee’s Guatemalan attorney, Telesforo Guerra, says that he has filed three separate legal appeals in the hope that his client can stay in Guatemala, where his political asylum request was rejected.


Guerra said he filed an appeal for a judge to make sure McAfee’s physical integrity is protected, an appeal against the asylum denial and a petition with immigration officials to allow his client to stay in this Central American country indefinitely.


The appeals could take several days to resolve, Guerra said. He added that he could still use several other legal resources but wouldn’t give any other details.


Fredy Viana, a spokesman for the Immigration Department, said that before the agency looks into the request to allow McAfee to stay in Guatemala, a judge must first deal with the appeal asking that authorities make sure McAfee’s physical integrity is protected.


“We won’t look into (allowing him to stay) until the other appeal is resolved,” Viana said. “The law gives me 30 days to resolve the issue.”


McAfee went on the run last month after Belizean officials tried to question him about the killing of Gregory Viant Faull, who was shot to death in early November.


McAfee acknowledges that his dogs were bothersome and that Faull had complained about them, but denies killing Faull. Faull’s home was a couple of houses down from McAfee’s compound in Ambergris Caye, off Belize’s Caribbean coast.


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RIM teases BlackBerry 10 launch with image of first BB10 smartphone






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Kevin Smith: “Clerks III” will be my last writing/directing effort






LOS ANGELES (TheWrap.com) – “Clerks III” will be Kevin Smith‘s last writing/directing effort, the filmmaker tweeted on Friday morning:


“So with the ‘HIT SOMEBODY‘ shift, the minute Jeff Anderson signs on, my last cinematic effort as a writer/director will be ‘CLERKS III’”






Referring to the ice-hockey comedy he’s writing that takes place over the course of 30 years, the “shift” means now it will be not a theatrical release but a television mini-series.


“Since ‘HIT SOMEBODY’ is now gonna be a mini-series,” the 42-year-old wrote. “Yes – that leaves room for a new final flick before I retire from directing feature films.”


So pending the participation of Anderson, the actor who played Randal Graves in the first two “Clerks” films, Smith’s fans will get the ultimate goodbye gift – a complete trilogy for the convenient store comedy franchise.


The first installment was the director’s mirco-budgeted breakthrough independent film, which launched characters Jay and Silent Bob into pop culture and led to four more spinoffs.


Minimum-wage earners Randal and Dante (Brian O’Halloran) were featured in a series of “Clerks” comics in the late ’90s before becoming the focus of a short-lived animated television series in 2000 (and eventually making it back to the big screen for a quick cameo in 2001′s “Jay and Silent Bob Strike Back”). Smith finally finished their story in 2006′s “Clerks II.”


Or so we thought. Apparently, he wants to end his film-directing career with the characters and actors that helped it begin. However, the tweet heard around the world of cinema suggests it may be somewhat of a challenge to persuade at least one half of the “Clerks” duo to come aboard.


Beyond “Hit Somebody” and “Clerks III,” Smith will keep himself busy with “SModcast,” a weekly podcast, and AMC’s “Comic Book Men,” which has been renewed for a second season.


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The Fiscal Cliff Isn’t the Problem






Early in Bill Bryson’s book A Walk in the Woods, the story of his ill-starred Appalachian Trail expedition, the author’s out-of-shape and impulsive hiking companion, Katz, decides his backpack is too heavy. So he starts throwing out the food they’d packed for the trip: rice, pepperoni, cheese, peanuts, Spam—he even discards coffee filters, which weigh next to nothing.


Panic about the fiscal cliff is threatening to lead Congress into the same short-term thinking. Investments in education, scientific research, and infrastructure—which account for a tiny portion of federal spending but make the economy more productive in the long run—are at risk. Restraining them by spending cap or sequester would be as dumb as discarding coffee filters to lighten one’s backpack. Yet if Democrats and Republicans don’t agree on a budget compromise by the end of the year, that’s what could happen.






A new Bloomberg Government analysis makes clear just how much pressure Washington is under. Instead of needing $ 4 trillion in deficit cuts over 10 years to stabilize the ratio of debt to gross domestic product ratio, negotiators need $ 5.9 trillion in cuts, according to Bloomberg Government’s calculations. In a Dec. 4 interview with Bloomberg Television, President Obama said he’ll fight to protect investments in things like education. He’s right. House Speaker John Boehner says the U.S. needs to grapple with big projected deficits in Medicare, Medicaid, and Social Security. He’s right, too. But their two rights have made a wrong: stalemate.


f991f  or50  01  inline405 The Fiscal Cliff Isnt the ProblemIllustration by Ana Benaroya


The solution is to figure out what problems need solving on which time scale. The most urgent priority is keeping the roughly $ 600 billion hit to GDP from kicking in. Edward Kleinbard, a professor at the University of Southern California’s Gould School of Law, who was chief of staff for the Joint Committee on Taxation from 2007 to 2009, proposes turning the cliff into a ramp. He would suspend the automatic spending cuts and allow the Bush tax cuts to expire in three years instead of overnight. Congress would commit to devote all of the savings from future spending cuts to lowering tax rates, but starting with the lowest brackets, not the highest. Says Kleinbard: “None of this is impossible.”


After that comes a bigger challenge: getting the economy to grow faster and foster innovation to make burdens on future generations as light as possible. Supporting the aged and infirm will be far easier if median household income rises to, say, $ 75,000 adjusted for inflation, rather than remaining stuck at just over $ 50,000. And Medicare and Medicaid expenses will be less daunting if medicine can find cures for killers such as diabetes and dementia.


That’s why it’s foolish to slash public programs indiscriminately to get out of the fiscal hole. It’s up to government to fund growth-enhancing investments that the private sector does too little of. James Heckman, a Nobel prize-winning economist at the University of Chicago, has shown that the return on a dollar invested in human capital is highest from birth to age five, lower during the school years, and lowest for adult job training. Yet the budget for Head Start, which helps children from low-income families aged five and younger to get ready for school, is paltry relative to the benefits bestowed on older Americans.


Physical capital is underfunded as well. In 2009 the American Society of Civil Engineers gave the U.S. a grade of D for infrastructure. It’s doubtful that things are much better now; only about $ 100 billion of the Obama administration’s nearly $ 800 billion stimulus program went toward roads, bridges, and other needs. Infrastructure investment would make the U.S. more competitive in the long run while creating jobs in the short run, and since the U.S. can borrow for next to nothing, the financing would be cheap. But Boehner is opposing Obama’s debt proposal—which includes $ 50 billion in infrastructure spending—because it doesn’t cut spending enough. That’s unfortunate.


Where could the U.S. cut that wouldn’t damage its growth potential? The obvious targets are defense and entitlements, which together account for nearly three-quarters of federal spending outside of interest payments. The U.S. spends more on its military than the next 13 countries combined; that would suggest potential for some nips and tucks. Social Security’s imbalance could be fixed by raising the ceiling for wages subject to the payroll tax. The knottier problems are Medicare and Medicaid, whose costs have been driven up by extraordinarily inefficient health-care spending. The U.S. spends 53 percent more on health care per capita than No. 2 Norway while getting worse results. (Norwegians’ life expectancy at birth is a year and a half longer.)


Making benefits less generous is the no-brainer way to close the gap. The forward-thinking way is to conquer diseases that sap America’s human and economic potential, as Jonas Salk’s vaccine did for polio in the 1950s. Medicare and Medicaid alone spend $ 140 billion a year on dementia care, the Alzheimer’s Association estimates, yet the U.S. spends only about half a billion dollars a year researching cures. George Vradenburg, chairman of USAgainstAlzheimer’s, argues that the disease could be mostly eliminated by 2020 with Manhattan Project-size funding; cuts to research could make the problem worse. “This disease could very well become the financial and social sinkhole of the 21st century,” says gerontologist Ken Dychtwald, chief executive officer of the consulting firm Age Wave.


Taxes, too, need to be reformed to amplify growth. Loopholes are a good place to start. The home mortgage interest deduction could be phased out over a long period, since all it does is encourage people to buy bigger houses and take on more debt. Savings incentives in the tax code mostly benefit the rich without actually increasing the rate of savings. But zeroing out all tax breaks would be a mistake. Some, like the one for research and development, enhance growth.


There is, of course, a point at which high tax rates slow the economy. Conservatives argue for holding down rates on capital gains and dividends while preserving all of the Bush high-end cuts on ordinary income. But the U.S. appears to be well shy of the tipping point at which hiking taxes would be counterproductive. The economy grew faster in the 1950s when the highest rate was 91 percent.


What’s limiting business investment and hiring today isn’t the prospect of slightly higher tax rates but the fear that there won’t be enough customers. Weak, uncertain demand is the lasting legacy of the Great Recession and the slow rebound since. In manufacturing, mining, and utilities, depreciation has outpaced fresh investment since the start of the recession in December 2007, leaving the sector with a decline in productive capacity, according to Federal Reserve data. Recessions have lasting consequences: Eroding capacity, they limit the economy’s ability to grow—and generate tax revenue—in the future.


Refocusing the budget debate on the future is something that both conservatives and liberals should support. Representative Jim Cooper of Tennessee, a fiscally conservative Democrat, worries that Congress isn’t taking the long-term entitlements crisis seriously. He says the government should copy the private sector by adopting accrual accounting instead of just measuring each year’s cash in and cash out. Accrual accounting would acknowledge how much the country owes future retirees. It would also differentiate investments in roads, bridges, and Head Start from day-to-day spending on paper clips and electricity. “The government is the last major entity left in America that doesn’t use accrual accounting,” says Cooper. “The business mantra is, if you can’t measure it, you can’t manage it.” Without that kind of discipline, he says, “Congress has very poor eyesight and won’t necessarily cut in the right place.”


Or, to put it in terms Katz might understand: When you still have 2,000 miles to hike, don’t throw away all of your pepperoni.


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Peru’s capital highly vulnerable to major quake






LIMA, Peru (AP) — The earthquake all but flattened colonial Lima, the shaking so violent that people tossed to the ground couldn’t get back up. Minutes later, a 50-foot (15-meter) wall of Pacific Ocean crashed into the adjacent port of Callao, killing all but 200 of its 5,000 inhabitants. Bodies washed ashore for weeks.


Plenty of earthquakes have shaken Peru‘s capital in the 266 years since that fateful night of Oct. 28, 1746, though none with anything near the violence.






The relatively long “seismic silence” means that Lima, set astride one of the most volatile ruptures in the Earth’s crust, is increasingly at risk of being hammered by a one-two, quake-tsunami punch as calamitous as what devastated Japan last year and traumatized Santiago, Chile, and its nearby coast a year earlier, seismologists say.


Yet this city of 9 million people is sorely unprepared. Its acute vulnerability, from densely clustered, unstable housing to a dearth of first-responders, is unmatched regionally. Peru’s National Civil Defense Institute forecasts up to 50,000 dead, 686,000 injured and 200,000 homes destroyed if Lima is hit by a magnitude-8.0 quake.


“In South America, it is the most at risk,” said architect Jose Sato, director of the Center for Disaster Study and Prevention, or PREDES, a non-governmental group financed by the charity Oxfam that is working on reducing Lima’s quake vulnerability.


Lima is home to a third of Peru’s population, 70 percent of its industry, 85 percent of its financial sector, its entire central government and the bulk of international commerce.


“A quake similar to what happened in Santiago would break the country economically,” said Gabriel Prado, Lima’s top official for quake preparedness. That quake had a magnitude of 8.8.


Quakes are frequent in Peru, with about 170 felt by people annually, said Hernando Tavera, director of seismology at the country’s Geophysical Institute. A big one is due, and the chances of it striking increase daily, he said. The same collision of tectonic plates responsible for the most powerful quake ever recorded, a magnitude-9.5 quake that hit Chile in 1960, occurs just off Lima’s coast, where about 3 inches of oceanic crust slides annually beneath the continent.


A 7.5-magnitude quake in 1974 a day’s drive from Lima in the Cordillera Blanca range killed about 70,000 people as landslides buried villages. Seventy-eight people died in the capital. In 2007, a 7.9-magnitude quake struck even closer, killing 596 people in the south-central coastal city of Pisco.


A shallow, direct hit is the big danger.


More than two in five Lima residents live either in rickety structures on unstable, sandy soil and wetlands that amplify a quake’s destructive power or in hillside settlements that sprang up over a generation as people fled conflict and poverty in Peru’s interior. Thousands are built of colonial-era adobe.


Most quake-prone countries have rigorous building codes to resist seismic events. In Chile, if engineers and builders don’t adhere to them they can face prison. Not so in Peru.


“People are building with adobe just as they did in the 17th century,” said Carlos Zavala, director of Lima’s Japanese-Peruvian Center for Seismic Investigation and Disaster Mitigation.


Environmental and human-made perils compound the danger.


Situated in a coastal desert, Lima gets its water from a single river, the Rimac, which a landslide could easily block. That risk is compounded by a containment pond full of toxic heavy metals from an old mine that could rupture and contaminate the Rimac, said Agustin Gonzalez, a PREDES official advising Lima’s government.


Most of Lima’s food supply arrives via a two-lane highway that parallels the river, another potential chokepoint.


Lima’s airport and seaport, the key entry points for international aid, are also vulnerable. Both are in Callao, which seismologists expect to be scoured by a 20-foot (6-meter) tsunami if a big quake is centered offshore, the most likely scenario.


Mayor Susana Villaran’s administration is Lima’s first to organize a quake-response and disaster mitigation plan. A February 2011 law obliged Peru’s municipalities to do so. Yet Lima’s remains incipient.


“How are the injured going to be attended to? What is the ability of hospitals to respond? Of basic services? Water, energy, food reserves? I don’t think this is being addressed with enough responsibility,” said Tavera of the Geophysical Institute.


By necessity, most injured will be treated where they fall, but Peru’s police have no comprehensive first-aid training. Only Lima’s 4,000 firefighters, all volunteers, have such training, as does a 1,000-officer police emergency squadron.


But because the firefighters are volunteers, a quake’s timing could influence rescue efforts.


“If you go to a fire station at 10 in the morning there’s hardly anyone there,” said Gonzalez, who advocates a full-time professional force.


In the next two months, Lima will spend nearly $ 2 million on the three fire companies that cover downtown Lima, its first direct investment in firefighters in 25 years, Prado said. The national government is spending $ 18 million citywide for 50 new fire trucks and ambulances.


But where would the ambulances go?


A 1997 study by the Pan American Health Organization found that three of Lima’s principal public hospitals would likely collapse in a major quake, but nothing has been done to reinforce them.


And there are no free beds. One public hospital, Maria Auxiliadora, serves more than 1.2 million people in Lima’s south but has just 400 beds, and they are always full.


Contingency plans call for setting up mobile hospitals in tents in city parks. But Gonzalez said only about 10,000 injured could be treated.


Water is also a worry. The fire threat to Lima is severe — from refineries to densely-backed neighborhoods honeycombed with colonial-era wood and adobe. Lima’s firefighters often can’t get enough water pressure to douse a blaze.


“We should have places where we can store water not just to put out fires but also to distribute water to the population,” said Sato, former head of the disaster mitigation department at Peru’s National Engineering University.


The city’s lone water-and-sewer utility can barely provide water to one-tenth of Lima in the best of times.


Another big concern: Lima has no emergency operations center and the radio networks of the police, firefighters and the Health Ministry, which runs city hospitals, use different frequencies, hindering effective communication.


Nearly half of the city’s schools require a detailed evaluation to determine how to reinforce them against collapse, Sato said.


A recent media blitz, along with three nationwide quake-tsunami drills this year, helped raise consciousness. The city has spent more than $ 77 million for retention walls and concrete stairs to aid evacuation in hillside neighborhoods, Prado said, but much more is needed.


At the biggest risk, apart from tsunami-vulnerable Callao, are places like Nueva Rinconada.


A treeless moonscape in the southern hills, it is a haven for economic refugees who arrive daily from Peru’s countryside and cobble together precarious homes on lots they scored into steep hillsides with pickaxes.


Engineers who have surveyed Nueva Rinconada call its upper reaches a death trap. Most residents understand this but say they have nowhere else to go.


Water arrives in tanker trucks at $ 1 per 200 liters (52 gallons) but is unsafe to drink unless boiled. There is no sanitation; people dig their own latrines. There are no streetlamps, and visibility is erased at night as Lima’s bone-chilling fog settles into the hills.


Homes of wood, adobe and straw matting rest on piled-rock foundations that engineers say will crumble and rain down on people below in a major quake.


A recently built concrete retaining wall at the valley’s head lies a block beneath the thin-walled wood home of Hilarion Lopez, a 55-year-old janitor and community leader. It might keep his house from sliding downhill, but boulders resting on uphill slopes could shake loose and crush him and his neighbors.


“We’ve made holes and poured concrete around some of the more unstable boulders,” he says, squinting uphill in a strong late morning sun.


He’s not so worried if a quake strikes during daylight.


“But if I get caught at night? How do I see a rock?”


___


Associated Press writer Franklin Briceno contributed to this report.


___


Frank Bajak on Twitter: http://twitter.com/fbajak


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Software guru McAfee did not have heart attack: lawyer






GUATEMALA CITY (Reuters) – Software pioneer John McAfee did not have a heart attack in Guatemala as originally thought, but is suffering from stress and hypertension, his lawyer Telesforo Guerra said on Thursday.


“He never had a heart attack. Nothing like that,” Guerra said in Guatemala City. “I’m not a doctor. I’m just telling you what the doctors told me. He was suffering from stress, hypertension and tachycardia (an abnormally rapid heartbeat).”






After being rushed to a hospital in an ambulance on Thursday, McAfee, 67, was later spirited out of the building out of sight of reporters and into a police patrol car, Guerra said.


McAfee, who is fighting deportation from Guatemala, was detained on Wednesday after crossing illegally into the country from neighboring Belize. Police in Belize want to question McAfee in connection with his neighbor’s murder.


Earlier, Guerra said McAfee had suffered two mild heart attacks in the morning.


(Reporting by Lomi Kriel; Editing by Stacey Joyce)


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Quentin Tarantino: if you think “Django Unchained” is violent, try slavery












LOS ANGELES (TheWrap.com) – If you think “Django Unchained” is violent, Quentin Tarantino has a historical reality check for you: Try slavery.


The “Pulp Fiction” auteur is back with an Antebellum revenge flick that according to early screenings pours on the blood and gore. Tarantino told an audience of British Academy of Film and Television Arts members on Thursday that if anything he spared the lash in his depiction of slavery, according to the Guardian.












“We all intellectually ‘know’ the brutality and inhumanity of slavery,” Tarantino said, “but after you do the research it’s no longer intellectual any more, no longer just historical record – you feel it in your bones. It makes you angry and want to do something … I’m here to tell you, that however bad things get in the movie, a lot worse shit actually happened.”


Tarantino’s comments indicate that he anticipates the irreverent “Django Unchained” – which opens on Christmas Day – will court controversy for setting its story against the backdrop of the slave trade.


The film centers on a bounty hunter (Christoph Waltz) who partners with a freed slave (Jamie Foxx) to take down a plantation owner, Calvin Candie (Leonardo DiCaprio) who controls his wife. Candie, who speaks with Magnolia-scented menace in the trailers, owns a mixed-race club in Greenville, Miss., and deals in slave-fights.


Perhaps because the film features Tarantino’s trademark sardonic humor, some early viewers have compared “Django Unchained” to the works of Mel Brooks.


“Just watched what was basically a three-hour homage to BLAZING SADDLES,”@LouLumenick tweeted.


But despite the humor, in an interview with Howard Stern this week, Tarantino indicated that he took the responsibility of depicting slavery very seriously. In particular, he said that shooting a scene where a female slave is brutalized brought him to tears and deeply impacted the crew.


“It was early on in the production, and it was the first time we started officially dealing with that kind of ugliness,” Tarantino said. “We later got used to dealing with that kind of ugliness. But that first – it was traumatizing to everybody, none less because of the fact that we were doing it in the real slave area of a real plantation where the slaves lived.


“This actually happened on the grounds,” he added. “There was blood in that ground. Those trees had memories of everything that happened there. We could feel the spirits of the old slaves on the property.”


Of course, Tarantino has taken on controversial subjects before. He turned an ultra-violent and satiric eye at the Nazis and an SD colonel nicknamed the “Jew Hunter” and turned it into “Inglourious Basterds.” Dealing with charges of insensitivity, it nonetheless collected over $ 300 million worldwide and was nominated for a Best Picture Oscar.


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S.Africa’s Mandela admitted to hospital for tests












JOHANNESBURG (Reuters) – Former South African president Nelson Mandela was admitted to hospital on Saturday for medical tests, although the government said there was no cause for alarm.


A statement from President Jacob Zuma‘s office gave no details of the condition of the 94-year-old anti-apartheid leader.












Former President Mandela will receive medical attention from time to time which is consistent with his age,” the statement said.


President Zuma assures all that Madiba is doing well and there is no cause for alarm,” it added, referring to Mandela by his clan name.


Mandela, who became South Africa‘s first black president after the country’s first all-race elections in 1994, was admitted to hospital in February because of abdominal pain but released the following day after a keyhole examination showed there was nothing seriously wrong with him.


He has since spent most of his time in his ancestral home in Qunu, a village in the impoverished Eastern Cape province.


His frail health prevents him from making any public appearances in South Africa, although in the last few months he has continued to receive high-profile visitors, including former U.S. President Bill Clinton.


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Exclusive: U.S. authorities probe SAC for Weight Watchers – sources












(Reuters) – U.S. authorities are investigating Steven A. Cohen’s SAC Capital Advisors hedge fund for possible insider trading in the shares of the popular diet company Weight Watchers International Inc, according to people familiar with the matter.


The investigation focuses on trading in Weight Watchers shares in the first half of 2011, when SAC Capital had taken a sizeable position in the stock, and potentially could implicate the billionaire hedge fund manager, the sources said on Friday.












Regulatory filings show that Cohen’s $ 14 billion fund briefly held 2.1 million shares in Weight Watchers during the period under scrutiny by authorities – at which time the diet company’s stock price roughly doubled.


The inquiry is in its early stages and it is not clear whether anything improper was done either by SAC Capital or Cohen himself, said the people familiar with the matter, who requested anonymity. The trading in Weight Watchers would be permissible as long as it was based on fundamental research or derived from individuals who did not have access to non-public corporate information.


An SAC Capital spokesman said the firm was not aware of any investigation involving Weight Watchers. A spokeswoman for Manhattan U.S. Attorney Preet Bharara declined to comment. A spokesperson for Weight Watchers did not immediately respond to a request for comment.


The new line of pursuit ratchets up pressure on Cohen, 56, one of the hedge fund industry’s most successful and best-known managers. The spotlight the probe casts on SAC Capital and Cohen could further rattle the hedge fund’s investors, who account for roughly 40 percent of the firm’s capital.


Two weeks ago, U.S. prosecutors charged a former SAC Capital employee, Mathew Martoma, with using inside information to generate profits and avoid losses totaling $ 276 million in shares of two drug stocks. The U.S. Securities and Exchange Commission also has formally warned SAC Capital that the firm could face civil charges.


A number of SAC’s investors have said they have not made a decision on whether to redeem money from the firm. Investors have until mid-February to put in a redemption notice.


Martoma has not entered a plea but his lawyer has said he expects to be exonerated. SAC has declined to comment beyond saying, “Mr. Cohen and SAC are confident that they have acted appropriately.”


Martoma is the seventh former SAC Capital employee to be charged or implicated by federal authorities for insider trading. The criminal complaint against Martoma, who last worked for CR Intrinsic, an affiliated fund of SAC Capital in 2010, for the first time alleges that Cohen personally approved the decision to sell-out of a big stake the hedge fund had in shares of Elan Corp and Wyeth, now part of Pfizer Inc.


Separately, U.S. authorities are also investigating SAC for suspicious trading in shares of biotech company InterMune Inc. in 2010, according to one of the people familiar with the probes. Officials at InterMune weren’t immediately available for comment. The SAC spokesman declined to comment on the InterMune investigation.


Federal authorities have not charged Cohen, whose net worth is estimated by Forbes at about $ 8.8 billion as of September this year. The hedge fund manager has told his investors and 900 employees that neither he nor the firm has done anything improper in response to Martoma’s arrest.


It’s not clear what has prompted federal authorities to look into Stamford, Conn.-based SAC Capital‘s trading in shares of Weight Watchers. One of the people familiar with the investigation said authorities are looking at trading that both booked hefty profits and avoided losses for SAC Capital.


BIG MOVE INTO WEIGHT WATCHERS


Over his 20 years in the business, Cohen has emerged as one of the pioneers of sophisticated trading. His funds, which charge some of the highest fees in the $ 2 trillion industry, has boasted an average annual return of 30 percent since launch in 1992.


This year, SAC Capital‘s main fund is up about 12 percent, compared to the industry average of just over 5 percent. SAC Capital‘s only down year was in 2008, when it lost 19 percent of its value.


Cohen has endured federal authorities looking into trading at his firm for about five years now. The investigation into SAC Capital ran parallel with the federal government’s undercover investigation that led to the October 2009 arrest of Galleon founder Raj Rajaratnam, who was convicted by a federal jury on May 2011 on 14 counts of insider trading.


SAC Capital‘s big move into Weight Watcher’s stock in early 2011 gained attention in part because it came at a time that the once-heavyset Cohen had lost about 20 pounds. (It’s not clear if he used Weight Watchers.) The trader has said he lost the weight to help with a chronic bad back.


A first quarter 2011 regulatory filing for SAC Capital showed the firm had acquired 2.1 million shares of the stock. But by the end of the next quarter, a subsequent filing revealed the hedge fund had unloaded nearly all of those shares.


It is not uncommon for a rapid-fire trading firm like SAC Capital to move in and out stocks – even big positions. SAC Capital, in particular, is not known for holding stocks for a long time.


SAC Capital’s trading strategy relies on analysts and portfolio managers gathering information about a company’s prospects before making a trading decision. Cohen has told people privately he believes his firm has drawn unwanted scrutiny from the government because of its long history of success.


Cohen has become an avid art collector in recent years, with a number of Jeff Koons sculptures gracing the grounds of his 30-room mansion in Greenwich, Conn.


Cohen, who grew up on Long Island in Great Neck, New York, is also pursuing the kind of charitable legacy building done by other famous Wall Street money managers. In 2010, the North Shore-LIJ’s pediatric hospital was renamed the Steven and Alexandra Cohen Children’s Medical Center of New York, after Cohen and his second wife in recognition of their donations.


More recently, he took a minority ownership stake in the New York Mets baseball team after failing to win the rights to buy another team, the Los Angeles Dodgers.


(Reporting by Matthew Goldstein, Jennifer Ablan and Emily Flitter; Editing by Tiffany Wu and Bernard Orr)


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